Next plc (LON: NXT), on Wednesday, posted strong results for its fiscal 2023. Shares still ended in the red today.
Next stock down on cautious guidance
Next plc results failed to impress the stock because the fashion retailer stuck to its cautious outlook for the future.
The British multinational continues to see an 8.0% decline in its pre-tax profit in fiscal 2024 as wages and utility bills keep costs higher. It also expects full-price sales to lose 1.5% this year.
On the plus side, though, Next plc revealed plans of launching a £220 million share repurchase programme. The stock market news arrives only a day after Next plc bought Cath Kidston brand from administrators for £8.5 million.
Versus the start of the year, Next stock is up 8.0% at writing.
Notable figures in Next plc results
On Wednesday, Next plc reported £870.4 million ($1.07 billion) of pre-tax profit for the full year – about a 6.0% increase versus fiscal 2022. Total sales also climbed 8.4% to £5.15 billion.
Forecast was for £860 million and £4.19 billion, respectively. The London-listed firm announced 140 pence a share of final dividend today that bumped up its total dividend for the year to 206 pence per share that also topped expectations.
Next plc results this morning revealed four main areas of opportunity outside of the core business:
- Total Platform
- Investments and acquisitions
- New brands and third-party licenses
- Developing the Next brand overseas
Wall Street currently has a consensus “overweight” rating on Next stock.
Source: https://invezz.com/news/2023/03/29/next-plc-results-full-year-sales-up/